California Heat Pump Rebates in 2026: What's Actually Funded This Year

The rebate landscape changed quickly between late 2024 and early 2026. Two of the largest programs Bay Area contractors used to layer onto heat pump installs are no longer accepting applications. The active stack is smaller now and the math looks different. Here is what is actually paying out in 2026.

Programs that closed

The federal Section 25C credit expired on December 31, 2025. It used to pay up to $2,000 per qualifying heat pump. The One Big Beautiful Bill Act, signed July 4, 2025, eliminated it for air-source heat pumps installed on or after January 1, 2026. Section 25D for geothermal is still on the books, but geothermal is a different scope of work that we do not install.

Tech Clean California was the largest single program in the Bay Area at its peak. The market-rate tier paid significantly on whole-home ducted heat pumps. It hit its funding cap on November 14, 2025 and went on full waitlist. New applications are not being accepted. The program could reopen if the state legislature funds it again. We will update this page when that happens.

What we work with in 2026

We participate in BayREN, MCE, PG&E, EBCE/Ava, and manufacturer instant rebate programs. Eligibility, dollar amounts, and program funding vary across these — some run on annual cycles with limited budgets, some shift quarter to quarter. The honest answer to “how much will I get back?” is “let us check before we quote.” Here is the short version of each.

BayREN

The Bay Area Regional Energy Network runs heat pump and electrification incentives in funded cycles. Budgets are limited; the application window is sometimes open and sometimes paused while the next cycle is funded. When applications are accepted, we submit on your behalf. We won’t promise a BayREN figure on a quote unless the cycle is actually open at the time we write it.

MCE Heat Pump HVAC

MCE (Marin Clean Energy) runs a residential heat pump rebate paid per ton of installed capacity. Two requirements:

1. Your home has to be on MCE service. MCE covers Marin County, Napa County, parts of Contra Costa County (San Ramon, Walnut Creek, Concord, Lafayette, and others), parts of Solano County, and pieces of additional counties. Your utility bill will tell you whether you are on MCE or default PG&E generation.
2. The contractor has to be registered as an MCE participating contractor. We are. We file the application as part of the install.

We confirm the current per-ton amount and territory rules when we write your estimate.

PG&E utility rebates

PG&E rebates change by quarter. The most reliable one in 2026 is a smart thermostat rebate when an eligible model goes in with the system. Heat-pump-specific rebates open and close as PG&E cycles funding. We check what is current at quote time.

EBCE / Ava Community Energy

If your home is in EBCE territory (Oakland, Berkeley, Fremont, Hayward, Dublin, Pleasanton, San Leandro, Newark, Union City, Livermore, and other Alameda County cities), additional heat pump and electrification rebates may apply. EBCE programs shift over time, so we verify what is open when we write your estimate.

Manufacturer instant rebates

Daikin, Bryant, Carrier, and Cooper & Hunter run seasonal instant rebates that come off the equipment cost at the distributor. Amounts depend on brand, tier, and the current promo cycle. These do not require any paperwork on your side.

HEEHRA (income-qualified)

The High-Efficiency Electric Home Rebate Act pays point-of-sale rebates for households below 80% of Area Median Income. California’s allocation has been heavily subscribed; availability shifts month to month. If your household may qualify, we check before we write the estimate.

What the 2026 stack actually looks like

The 2024 version of a typical Bay Area heat pump install used to layer Tech Clean California, BayREN, federal 25C, and a utility rebate together. That math is no longer available — two of those four are closed.

In 2026, what’s left depends entirely on your address and the current program cycles. Inside MCE territory with an eligible heat pump system and a manufacturer promo running, the stack can still be meaningful. Outside MCE territory or in a quiet program quarter, it’s lighter. We don’t quote a stack on the website because the honest figure depends on facts we’d rather verify before we write your estimate.

Why the contractor matters

For MCE specifically, the contractor has to be a registered participating contractor or the rebate does not get filed. PG&E, BayREN, and manufacturer rebates also require contractor paperwork. We submit every applicable rebate as part of the install — that is built into the install price, not an add-on.

What we won’t quote

If a competitor’s estimate lists Tech Clean California or federal 25C as part of your 2026 rebate stack, ask them to verify the program status before signing. Those two are not paying out new applications right now. We do not quote what we cannot deliver.